Question 1

Bottom-up budgeting ____.

Accepted Answer

A)  is a drinking game at accountant parties 
B)  starts with a bottom line of zero 
C)  is the least labor-intensive for unit or department managers 
D)  fails when unit or department managers overstate operating costs 
A)  is a drinking game at accountant parties 
B)  starts with a bottom line of zero 
C)  is the least labor-intensive for unit or department managers 
D)  fails when unit or department managers overstate operating costs

Question 2

When a budget is balanced, expenditures equal borrowing plus ____.

Accepted Answer

A)  gross revenues 
B)  net revenues 
C)  cash and short-term investments 
D)  capital assets 
A)  gross revenues 
B)  net revenues 
C)  cash and short-term investments 
D)  capital assets

Question 3

In a hospital's physical therapy department, a therapist can perform 2 units of service per hour. The expected service needs in the next fiscal year is 200 units of service per week. How many physical therapist FTEs are needed for this workload?

Accepted Answer

A)  2.0 
B)  2.5 
C)  3.0 
D)  4.0 
A)  2.0 
B)  2.5 
C)  3.0 
D)  4.0

Question 4

The number of units of service provided for patient care is referred to as ____________________.

Accepted Answer

The answer of The number of units of service provided...

Question 5

The FTE value for an employee who works 10 hours per day, 2 days per week, 52 weeks a year is ____________________.

Accepted Answer

The answer of The FTE value for an employee who...

Question 6

The budgeting philosophy that bases unit or departmental budgets on the current fiscal years budget and an adjustment factor is ____.

Accepted Answer

A)  bottom-up budgeting 
B)  top-down budgeting 
C)  incremental budgeting 
D)  zero-base budgeting 
A)  bottom-up budgeting 
B)  top-down budgeting 
C)  incremental budgeting 
D)  zero-base budgeting

Question 7

When conducting breakeven analysis for a new service at a healthcare facility, ____.

Accepted Answer

A)  you solve for the volume of the new service 
B)  you include supervisory salary and benefits as a variable cost 
C)  you include supplies used by the new service as a fixed cost 
D)  you solve for the price of the new service 
A)  you solve for the volume of the new service 
B)  you include supervisory salary and benefits as a variable cost 
C)  you include supplies used by the new service as a fixed cost 
D)  you solve for the price of the new service

Question 8

An expenditure budget for the next fiscal year is the combined operating budgets for the departments or units, plus the next year's capital budget, plus annual depreciations and amortizations.

Accepted Answer

A) True 
 B)False

Question 9

The authorized personnel budget refers to the costs of employing licensed professionals such as physicians, nurses, and pharmacists.

Accepted Answer

A) True 
 B)False

Question 10

Developers of a healthcare facility's capital budget must know ____.

Accepted Answer

A)  the original cost of all existing capital items 
B)  the dates when capital items will need to be replaced 
C)  the current values of all existing capital items 
D)  the vendors from which each capital item was purchased 
A)  the original cost of all existing capital items 
B)  the dates when capital items will need to be replaced 
C)  the current values of all existing capital items 
D)  the vendors from which each capital item was purchased

Question 11

A new viral disease sweeps the nation: gray squirrel encephalitis. The disease can be transmitted via blood products. Blood donor centers are required to screen each donor's blood for gray squirrel encephalitis. This immediately increases the cost of blood products by 10%. Describe the budget process for dealing with this sudden change.

Accepted Answer

Variance analysis is done soon after the

Question 12

Variance analysis is most commonly performed on ____.

Accepted Answer

A)  operating budgets 
B)  statistical budgets 
C)  breakeven calculations 
D)  budget amendments 
A)  operating budgets 
B)  statistical budgets 
C)  breakeven calculations 
D)  budget amendments

Question 13

The manager of a hospital Blood Bank learns that the American Red Cross will increase its charges for blood products by 7% next year. What will she need to do when it is time to prepare the Blood Bank's operating budget?

Accepted Answer

She will need to increase the expected c

Question 14

Salaries and benefits is almost always the largest expense category for hospitals and nursing homes.

Accepted Answer

A) True 
 B)False

Question 15

A large hospital uses line item control of its budget. Variance analysis shows that one unit is exceeding its budget for Repairs due to a manufacturing flaw in a commonly used device that is no longer under warranty. The unit manager can ____.

Accepted Answer

A)  transfer money from the Rental and Leasing account to the Repairs account 
B)  approve a budget amendment that increases the Rental account budget 
C)  go over budget on Repairs and submit a Variance Report 
D)  request a meeting with upper management to change the budget 
A)  transfer money from the Rental and Leasing account to the Repairs account 
B)  approve a budget amendment that increases the Rental account budget 
C)  go over budget on Repairs and submit a Variance Report 
D)  request a meeting with upper management to change the budget

Bottom-up budgeting ____.

When a budget is balanced, expenditures equal borrowing plus ____.

In a hospital's physical therapy department, a therapist can perform 2 units of service per hour. The expected service needs in the next fiscal year is 200 units of service per week. How many physical therapist FTEs are needed for this workload?

The number of units of service provided for patient care is referred to as ____________________.

The FTE value for an employee who works 10 hours per day, 2 days per week, 52 weeks a year is ____________________.

The budgeting philosophy that bases unit or departmental budgets on the current fiscal years budget and an adjustment factor is ____.

When conducting breakeven analysis for a new service at a healthcare facility, ____.

An expenditure budget for the next fiscal year is the combined operating budgets for the departments or units, plus the next year's capital budget, plus annual depreciations and amortizations.

The authorized personnel budget refers to the costs of employing licensed professionals such as physicians, nurses, and pharmacists.

Developers of a healthcare facility's capital budget must know ____.

Variance analysis is most commonly performed on ____.

The manager of a hospital Blood Bank learns that the American Red Cross will increase its charges for blood products by 7% next year. What will she need to do when it is time to prepare the Blood Bank's operating budget?

Salaries and benefits is almost always the largest expense category for hospitals and nursing homes.

A large hospital uses line item control of its budget. Variance analysis shows that one unit is exceeding its budget for Repairs due to a manufacturing flaw in a commonly used device that is no longer under warranty. The unit manager can ____.

The Environment of Healthcare Finance

Paying for Healthcare

The Rising Costs of Medical Services and Healthcare Reform

Basic Accounting Concepts

Accounting and the Financial Management Process

The Balance Sheet

The Income Statement

Cash Management

Investing, Borrowing, and the Time Value of Money

Revenue Cycle Management

Managing Financial Risk

Financial Management of Health Information Technology

Filters

Exam 8: Budgets

Bottom-up budgeting ____.

When a budget is balanced, expenditures equal borrowing plus ____.

In a hospital's physical therapy department, a therapist can perform 2 units of service per hour. The expected service needs in the next fiscal year is 200 units of service per week. How many physical therapist FTEs are needed for this workload?

The number of units of service provided for patient care is referred to as ____________________.

The FTE value for an employee who works 10 hours per day, 2 days per week, 52 weeks a year is ____________________.

The budgeting philosophy that bases unit or departmental budgets on the current fiscal years budget and an adjustment factor is ____.

When conducting breakeven analysis for a new service at a healthcare facility, ____.

An expenditure budget for the next fiscal year is the combined operating budgets for the departments or units, plus the next year's capital budget, plus annual depreciations and amortizations.

The authorized personnel budget refers to the costs of employing licensed professionals such as physicians, nurses, and pharmacists.

Developers of a healthcare facility's capital budget must know ____.

Variance analysis is most commonly performed on ____.

The manager of a hospital Blood Bank learns that the American Red Cross will increase its charges for blood products by 7% next year. What will she need to do when it is time to prepare the Blood Bank's operating budget?

Salaries and benefits is almost always the largest expense category for hospitals and nursing homes.

A large hospital uses line item control of its budget. Variance analysis shows that one unit is exceeding its budget for Repairs due to a manufacturing flaw in a commonly used device that is no longer under warranty. The unit manager can ____.

The Environment of Healthcare Finance

Paying for Healthcare

The Rising Costs of Medical Services and Healthcare Reform

Basic Accounting Concepts

Accounting and the Financial Management Process

The Balance Sheet

The Income Statement

Cash Management

Investing, Borrowing, and the Time Value of Money

Revenue Cycle Management

Managing Financial Risk

Financial Management of Health Information Technology

Filters